McHenry Announces Committee Republicans’ Capital Formation Agenda

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Cmte Financial Services (R)
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McHenry Announces Committee Republicans’ Capital Formation Agenda

Washington, Sep 27 -

Today, the top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), released Committee Republicans’ capital formation agenda. While SEC Chair Gensler and Congressional Democrats ignore the importance of capital formation, Committee Republicans will bring this issue back to the forefront as we work to strengthen our public markets, help small businesses and entrepreneurs, and increase opportunities for all investors.

“Capital formation is critical to creating long-term, sustainable growth,” said Republican Leader McHenry. “Democrats continue to pursue policies that increase regulatory and compliance costs. These costs restrict everyday Americans’ access to investment options, discourage early-stage companies from going public, and disproportionately burden small businesses and other job creators in need of capital. By building on the success of the bipartisan JOBS Act of 2012, we can rein in these onerous barriers and ensure U.S. capital markets remain the envy of the world. Committee Republicans have identified commonsense, pro-growth reforms that will strengthen public markets, help small businesses and entrepreneurs, and increase opportunities for all investors. I’m proud to announce these proposals to foster capital formation as a central component of Committee Republicans’ agenda.”

“The JOBS Act of 2012 was an overwhelming bipartisan success story, improving access to capital and job creation by small businesses in the United States,” said Mike Piwowar, Executive Vice President, MI Finance, Milken Institute. “Ten years later, we have an opportunity to build on that success. I look forward to working with members of Congress to achieve more equitable access to investing in our nation’s entrepreneurs and job creators.”

“It’s time for Washington policymakers to update the Accredited Investor definition in such a way that safely expands access to high-growth investments to Americans who have been forced on the sidelines,” said Rodney Sampson, General Partner, 100 Black Angels & Allies Fund I; Executive Chairman, Opportunity Hub; Vice Chairman, Piksel Technology Corporation. “Unfortunately, the SEC is moving in the opposite direction by considering possible reforms that would raise the wealth thresholds and further restrict access for the non-wealthy. Some of us have worked a very long time to reach the current income and wealth minimums to be accredited investors. If we’re not in the game, it’s going to cut out a lot of early-stage capital that’s funding the funds and founders who are not accessing capital today because of systemic and ongoing bias along with limited network access in the ecosystem. I’m pleased that Congressman McHenry’s agenda is focused on expanding access for all investors that will translate to more funding for all funds and founders, particularly those that are Black, Latinx, and Indigenous.”

"The bi-partisan JOBS Act was signed into law in 2012 and the impact has been true to its name - there was an undeniable jumpstart to capital formation, supporting the evolution of growth enterprises in areas such as healthcare and technology and significant job creation," said Jeffrey M. Solomon, Chair & CEO, Cowen. "Many of the growth companies that are now ground-breaking leaders in their sectors are doing so because the JOBS Act enabled them to fund their businesses and add the people and resources needed to achieve their goals. The legislative proposals led by Congressman McHenry will further refine capital formation policies and enhance the framework for investors to engage with these emerging companies."

Read more details on Financial Services Committee Republicans’ capital formation agenda here.

Background:

On April 5, 2022, Republican Leader McHenry released a Republican staff report, which highlighted how the bipartisan Jumpstart Our Business Startups (JOBS) Act of 2012 helped spur capital formation and job creation, as well as how Congress can build on its success to strengthen U.S. public markets and expand opportunities for underrepresented entrepreneurs and investors.

On April 5, 2022, Republican Leader McHenry hosted a Republican roundtable where a broad array of experts on capital formation discussed the many positive impacts of the JOBS Act on small businesses and investors, and examined how Congress can build on its success to spur job creation and provide everyday Americans more opportunities to build wealth through our capital markets.

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